Federal Reserve Comes Back to Reality in March Statement

The Federal Reserve’s dovish March statement shows the central bank was a little too optimistic about the economy towards the end of last year. On Wednesday, the Fed said it expected to hike rates twice in 2016. Just three months ago, the Fed said it was likely to raise rates four times in 2016. ‘I think it’s the Federal Reserve coming more in line with reality,’ said Craig Erlam, a senior market analyst at Oanda, based in London. ‘When we saw the four rate hike expectations at the end of last year, I think everyone was a little bit amazed because many people didn’t think it was the right time for the first rate hike,’ The Fed raised the short-term Fed funds rate last December for the first time in nearly ten years. TheStreet’s Scott Gamm reports from Wall Street.